Nifty50: 16,634 ▲ +10 (+0.0%)
Sensex: 55,944 ▼ -14 (-0.0%)
The markets opened strong, but remained subdued throughout the day. The Nifty50 closed flat, but 28 of its constituents closed in the red.
Among the Nifty sectoral indices, IT (+0.7%) and FMCG (+0.5%) were the top gainers, while Realty (-0.7%) and Media (-0.6%) were today’s top losers.
| Top gainers | Today's change |
| Adani Ports | ▲ 3.7% |
| HDFC Life | ▲ 2.5% |
| Hindalco | ▲ 2.4% |
| Top losers | Today's change |
| Bajaj Finserv | ▼ 2.9% |
| Titan | ▼ 2.2% |
| Maruti Suzuki | ▼ 1.3% |
Here are the top stories of the day.
Caps off for flight fares?
According to reports, the government may soon consider removing restrictions on the number of flights along with caps on the minimum and maximum ticket fares. Although no official decision has been announced, limits on operational flights and ticket pricing were reportedly discussed between the aviation minister and airline top brass.
Airline passenger traffic, too, has been recovering, with domestic passenger traffic crossing the two-lakh mark on 1 August. This is still short of the 3.5–4 lakh passengers per day recorded pre-pandemic. Shares of Spicejet (+4.21%) and Indigo (+1.5%) closed in the green today.
Sugarcane prices hiked before festive season
Starting October, the Centre has hiked the per-quintal fair remunerative price of sugarcane by ₹5 to ₹290. The decision to raise the prices has been set for a basic recovery rate of 10%. Recovery rate is the percentage of sugar produced to the sugarcane crushed.
Meanwhile, sugar prices have also seen an uptick ahead of the festive season and due to increasing demand from the global markets. Sugar stocks such as Balrampur Chini, Dalmia Sugar and Shree Renuka Sugar gained around 3% to 7% today.
Vijaya Diagnostics IPO opens on 1 September
September will open its IPO innings with the public issue of Vijaya Diagnostics. Established in 1981, the Hyderabad-based diagnostic chain is a competitor to listed players such as Thyrocare and Metropolis Healthcare.
The company reported its FY21 revenue at ₹376.7 crore, while its profit for the period stood at ₹84.9 crore. It has a 2% market share within the diagnostic market in south India. The price band and issue size are yet to be announced, but the proceedings of the IPO will be used entirely as an offer for sale. We’ll keep you posted on all the details of this IPO, so stay tuned.
Closing bell
Today, the Nifty50 hit its previous lifetime-high of around 16,700, but thereafter, the markets turned jittery during the day. Following the bounce-back seen over the last two trading sessions, profit booking seemed to be the order of the day. There is no major indication of rising volatility from the volatility index. However, tomorrow being monthly derivative expiry, traders must be prepared for any kind of a surprise.
Good to know
What is the put-call ratio?
The put-call ratio shows put volumes in relation to the call volumes. This helps traders to gauge the overall mood of the markets. The ratio is simply calculated by dividing put open interest by call open interest. Traders of put are expecting the market to go down, while holders of call would like the prices to go up. Hence, a put-call ratio of more than 1 means the market sentiment is bearish. Whereas, the put-call ratio of below 1 indicates the market sentiment is upbeat.
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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.